ISLAMABAD: The Federal Board of Revenue (FBR) on Friday directed all registered tyre manufacturers to install electronic production monitoring systems by Nov 30 to ensure real-time production recording and data transmission to the tax authorities.
The tyre industry is the latest sector brought under the electronic production monitoring regime, which also covers packaged tea, household electronics, paper and paperboard, edible oil and ghee, leather, textile spinning, tiles, packaged milk, packaged juices, bottled water and aerated beverages.
Electronic monitoring is part of the FBR plan to bridge the Rs3.7 trillion sales tax gap between collections and actual potential.
FBR issued the directive through Sales Tax General Order (STGO) No.32 of 2026 on Friday.
FBR orders nine companies to install monitoring system by Nov 30
Under the new arrangement, tyre manufacturers will be required to install prescribed hardware and software at every curing press and takeaway conveyor or finishing line to electronically record production.
The monitoring system will count each cured tyre and distinguish actual production from dry runs, maintenance and warm-up cycles, and identify uncured tyres. It will also identify each tyre by diameter, width, tread design or pattern, and weight, using approved stock keeping unit (SKU) data.
The FBR has authorised ISSM Labelling Solutions (Pvt) Ltd to provide electronic production monitoring solutions to the tyre industry.
The authorised vendor will be required to ensure real-time recording of production events and secure transmission of data to the FBR’s central control system. The system must also detect and report unexpected stoppages, equipment failures, tampering, interruptions and attempts to bypass monitoring equipment.
The monitoring arrangement will maintain audit logs and generate production reports and analytical data for reconciliation and enforcement under the sales tax law. The order prohibits registered manufacturers from removing tyres from their business premises unless their production has undergone the prescribed electronic monitoring.
Manufacturers will also be responsible for providing the necessary information technology infrastructure, connectivity, electricity supply, and access to monitoring equipment, in addition to paying the prescribed fees and charges.
Meanwhile, the FBR has initially identified nine registered tyre manufacturers for the implementation of the system. These include Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd and United Rubber (Pvt) Ltd.
However, the FBR clarified that the list was not exhaustive and that all other registered manufacturers engaged in tyre production would also be subject to the monitoring requirement.
The chief commissioners of Inland Revenue have been directed to nominate dedicated focal persons to coordinate with manufacturers, the authorised vendor and the FBR for timely installation and operationalisation of the system. The field formations have also been instructed to identify manufacturers not included in the initial list, ensure their inclusion in the monitoring regime and submit implementation progress reports to the FBR, said the STGO.
Published in Dawn, October 31st, 2026
